Tuesday, June 7, 2016

Saudi's Economic Diversity Program will Change the Political and Structural Foundations of the Nation

Saudi is implementing the National Transformation Program designed to reduce the countries dependency on fossil fuels and find other places were revenue can be found. They hope that through diversification they can ensure the nation stays strong into the future. This change will likely result in political and structural changes in the nation. 

Anytime you change a major revenue source the entire entity will adjust. The modern Kingdom was built off of oil wealth while using older tribal structures. As the government adjusts away from the easy income of oil and to other industries it will naturally need to let go of some control over their economy. 

Productive and innovative people need the space to accomplish their goals. Capitalism, and the market hand, will make its way through their economy pushing the government structure to change and adjust its laws to give their economy the best chance at competitive success. The very way people view their country and its values will change. 

A serious problem might result when the new changes that loosen control collide with the social elements that want more strictness. This can result in societal dishevel and challenge as new values seek to supplant older values based on the necessities of not having oil to maintain existing structures. If Saudi Arabia can successfully integrate these changes they will make a smoother transition in their political and structural foundations. 

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